(a) The commissioner shall:

1. (i) Notify the association of the existence of an insolvent insurer not later than three (3) working days after the commissioner receives an order of liquidation.
2. (ii) Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.

(b) The commissioner may:

1. (i) Require that the association notify the insureds of the insolvent insurer and any other interested parties of the order of liquidation and of their rights under this chapter. This notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation in all counties in which the insolvent insurer transacted insurance business shall be sufficient.
2. (ii) Require each insurance producer of the insolvent insurer to give prompt written notice by first class mail of such insolvency and the rights of the insured under this chapter to each insured of the insolvent insurer for whom the insurance producer is insurance producer of record, at such insured's last known address.
3. (iii) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due. The fine shall not exceed five percent (5%) of the unpaid assessment per month, except that no fine shall be less than one hundred dollars ($100) per month.
4. (iv) Revoke the designation of any servicing facility if the commissioner finds claims are being handled unsatisfactorily.
5. (v) Any final action or order of the commissioner under this chapter shall be subject to judicial review in a court of competent jurisdiction.

(c) If the commissioner determines that any member insurer may be subject to a future delinquency proceeding under IC 27-9 , the commissioner may do the following to assist in the performance of the commissioner's duties:

1. (1) Share confidential and privileged documents, material, or information reported under an enterprise risk filing with the association regarding the member insurer.
2. (2) Share confidential and privileged documents, material, the contents of an examination report, a preliminary examination report or its results, or any matter relating thereto, including working papers, recorded information, documents, and copies thereof produced by, obtained by, or disclosed to the commissioner or to any other person in the course of any examination with the association regarding the member insurer.
3. (3) Disclose the information described in this subsection to the association so long as the association agrees in writing to hold the information confidential in a manner consistent with this chapter and uses the information to prepare for the possible liquidation of the member insurer. Access to the information disclosed by the commissioner to the association under this subsection shall be limited to the association's staff and its counsel. The board of directors of the association may have access to the information disclosed by the commissioner to the association once the member insurer is subject to a delinquency proceeding under IC 27-9 , subject to any terms and conditions established by the commissioner.
4. (4) Disclose the information described in this subsection with associations in other states and with any organization of one (1) or more state associations of similar purposes so long as the recipient of the information agrees in writing to hold the information confidential in a manner consistent with this chapter and uses the information to prepare for the possible liquidation of the member insurer. Access to the information disclosed by the commissioner under this subsection shall be limited to the association's staff and its counsel. The board of directors of the association may have access to the information disclosed by the commissioner to the association once the member insurer is subject to a delinquency proceeding under IC 27-9 , subject to any terms and conditions established by the commissioner.

5. (5) If the commissioner determines that a liquidation is likely, the commissioner may cooperate with the association and with any organization of one (1) or more state associations of similar purposes to provide for an orderly transition to liquidation to minimize any delay in the handling and payment of claims.

   Formerly: Acts 1971, P.L.390, SEC.1. As amended by P.L.163-1988, SEC.4; P.L.178-2003, SEC.41; P.L.86-2026, SEC.15.